Massachusetts State Representative Charged with COVID Relief Fraud

<p>Authorities arrested Massachusetts state Representative Francisco Paulino on Wednesday, charging him with 11 counts related to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering. U.S. Attorney Leah Foley announced the arrest, marking the second time this month that a Democratic Party official has been charged with similar offenses.</p><p>According to the indictment, Paulino allegedly devised a scheme to obtain over $700,000 in federal pandemic relief funds. It is claimed that he used portions of the funds for personal expenses, including real estate payments, loan payments, and transfers to his campaign account. Additionally, he is accused of lending some of the money to others at higher interest rates than the pandemic loan rate.</p><p>The indictment states that Paulino's alleged fraudulent activities began in 2020 when he applied for COVID relief funding on behalf of a 77-year-old relative without their knowledge.</p><p>Paulino's arrest follows the recent arrest of Lawrence Mayor Brian DePeña, who was charged with similar offenses. A federal grand jury has also indicted DePeña on 11 counts related to pandemic loan fraud and money laundering. The FBI reported that DePeña began diverting public funds in 2020 while serving on the Lawrence city council.</p><p>U.S. Attorney Foley emphasized the importance of the funds meant for struggling Americans and business owners during the pandemic, stating, "The money these two individuals allegedly scammed was meant for hardworking Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit." She added that the arrests of public officials serve as a reminder that no one is above the law.</p>